HomeMy WebLinkAboutR-2015-010 Washington State Transit Insurance Pool Agreement Modification (WSTIP)RESOLUTION NO. R-2015-010
A RESOLUTION regarding changes to the Interlocal Agreement with the Washington State
Transit Insurance Pool (WSTIP).
WHEREAS, the City of Yakima is a member of the Washington State Transit Insurance
Pool (WSTIP); and
WHEREAS, the Washington State Transit Insurance Pool is authorized under RCW
48.62 to develop and administer a program which provides an opportunity for members to jointly
pool and self -insure their liability losses, and jointly purchase excess insurance, or reinsurance,
as well as jointly utilize administrative and other services; and
WHEREAS, the proposed WSTIP changes will cleanup some of the language in the
document to comply with State law; modify provisions to allow members, who want to withdraw,
the option to "walk away" without a continuing obligation by either the pool or the member; add a
"wind up" provision if the pool is terminated, and eliminate the term "associate members."; and
WHEREAS, the Board of Directors at their regular meeting on September 26, 2014,
voted to change the member agreement; and
WHEREAS, the Board of Directors at their regular meeting on September 26, 2014,
conducted said vote to approve the changes to the membership agreement; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized and directed to execute the attached Washington State
Transit Insurance Pool Interlocal Agreement.
ADOPTED BY THE CITY COUNCIL this 20th day of January, 2015.
ATTEST:
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Sonya ( laar Tee, City C
Mica Ca ley, Mayor
WASHINGTON STATE TRANSIT INSURANCE POOL I RISK MANAGEMENT IN MOTION
2629 12th Court SW I Olympia, WA 98502 1 360-786-1620 1 www.wslip.org
Washington State Transit Insurance Pool
2014 Interlocal Agreement
RAF: 3/10/14
Whereas, RCW 48.62 empowers local government entities to join together to form a joint self-
insurance program; and
Whereas, the transit systems identified in Section 1 have previously joined together through
an interlocal agreement to form the Washington State Transit Insurance Pool (Pool); and
Whereas, the transit systems desire to continue the Pool but to revise and clarify certain
provisions through the adoption of this new interlocal agreement;
Now, therefore, in consideration of the mutual covenants set forth herein, it is hereby agreed
as follows:
Section 1. Members. The local governmental entities set forth in the attached Membership
Appendix are parties to this interlocal agreement and are Members of the Pool. The Pool's
executive director shall update the appendix as necessary to reflect additions or deletions to
membership.
Section 2. Definitions. The following terms are defined as follows:
a. Board—the Board of Directors of the Pool.
b Member—a Washington public transit entity that has joined the Pool through the
subscription of this interlocal agreement.
c. Pool—the Washington State Transit insurance Pool.
Throughout this agreement defined terms are in bold.
Section 3. Powers. The Pool is empowered to:
a. Do all things necessary and proper for the establishment of self-insurance programs
for property and liability risks.
b. Investigate the establishment of self-insurance programs for risks in addition to those
identified in subsection 3a. Following such investigation the Pool may establish such
additional self-insurance programs so long as the requirements of section 12 are met.
c Establish a self-insurance program for Members through joint funding.
d. Purchase insurance, excess insurance, and reinsurance.
e. Provide for risk management, loss control, and other services.
f. Provide legal counsel for the defense of claims and other legal services.
g. Consult with the state insurance commissioner and the state risk manager.
h. Exercise all powers and perform all functions necessary to accomplish all lawful
programs.
i. Enter into contracts and incur debts, liabilities, and obligations.
j. Sue and be sued.
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✓ WASHINGTON STATE TRANSIT INSURANCE POOL I RISK MANAGEMENT IN MOTION
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k. Invest funds.
I. Provide administrative and financial services to its Members and others.
Section 4. Board of Directors.
a. The Pool shall be governed by its Board.
b. Each Member shall appoint one representative and at least one alternate
representative to the Board.
c. If a representative is not able to attend a meeting of the Board, an alternate
representative may attend and shall have the same authority as the representative.
d. Representatives and alternates shall be officers or employees of the Member.
e, The Board shall meet at least once each calendar year.
f. The Board shall adopt an annual budget.
g. The Board shall be chaired by its president or, if the president is not available, its
vice president.
h. Each representative or alternative shall have one vote Voting by proxy is not
permitted. Except as is specifically provided otherwise in this agreement, a majority
of the representatives or alternates present at a meeting of the Board shall
constitute a quorum and the majority of the quorum is sufficient to decide any matter.
Section 5. Bylaws The Board shall adopt bylaws which shall not be inconsistent with any
part of this agreement.
Section 6. Executive Director. The Board shall engage an executive director who shall be
the chief executive officer of the Pool.
Section 7. Officers,
a. The Board shall elect officers.
b. The officers shall include a president, vice president, secretary, and such other
officers as authorized by the bylaws.
c. Duties and terms of office of officers shall be as specified in the bylaws.
Section 8. Committees. The Board may establish committees, both standing and ad hoc,
from time to time as it deems appropriate. The composition and responsibilities of
committees shall be specified by the Board.
Section 9. New Members.
a. The Board may approve the admission of new Members on terms and conditions as
it deems appropriate.
b. For admission, Members must have at least three-fourths affirmative vote of all
representatives or alternates.
c. Members must be local government public transit entities situated in Washington.
d. Once approved for membership, a new Member's admission to the Pool shall be
memorialized by the new Member signing copies of this Interlocal Agreement and all
amendments thereto.
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WASHINGTON STATE TRANSIT INSURANCE POOL 1 RISK MANAGEMENT IN MOTION
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Section 10. Amendment.
a. The governing boards of the Members may adopt amendments to this agreement.
b. No amendment shall be adopted without at least three-fourths affirmative vote of all
governing boards.
c. The Pool shall provide notice of any proposed amendment to the governing boards
of the Members as specified in the bylaws.
Section 11. Duration. The duration of the Pool shall be perpetual.
Section 12. Addition of New Programs.
a. The Pool may establish self-insurance programs in addition to self-insurance
programs for property and liability risks only with the affirmative vote of at least three-
fourths of all representatives or alternates directors.
b. No Member shall be required to participate in any such additional self-insurance
program.
c. If the Pool elects to establish such additional self-insurance programs, it shall
implement adequate measures to protect and safeguard the equity and fiscal integrity
of the Pool's self-insurance programs for liability and property.
Section 13. Funding.
a. The Pool shall be funded by Member contributions and assessments.
b. Member contributions and assessments shall be established by the Board in its
annual budget. If the Pool's financial situation warrants, the Board may require
supplementary and retroactive contributions and assessments.
c. All Members shall pay contributions, assessments, and fees promptly when due,
Section 14. Withdrawal of a Member
a. A Member may withdraw from the Pool only at the end of a fiscal year by providing
at least six month's written notice thereof. No Member may withdraw for thirty six
months after joining the Pool. Following withdraw a former Member may not rejoin
the Pool for thirty six months.
b. The withdrawal by a Member shall not affect the validity of this agreement with
respect to the remaining Members.
c. Upon withdrawal, a Member shall have no further obligations to the Pool nor shall it
be entitled to any portion of the Pool's assets or equity; Provided, the withdrawing
Member shall pay all of its pending contributions and assessments.
Section 15. Termination of a Member.
a. A Member may be terminated only by the affirmative vote of at least three-fourths of
all representatives or alternates. The effective date of termination shall be six
months following notice of the termination vote. Until the effective date of
termination, the terminated Member shall have the benefits and burdens of
participation in the Pool.
3
WST P
WASHINGTON STATE TRANSIT INSURANCE POOL 1 RISK MANAGEMENT IN MOTION
2629 12th Court SW 1 Olympia, WA 98502 1 360-786-1620 1
www.wstip.org
b. The termination of a Member shall not affect the validity of this agreement with
respect to the remaining Members.
c. Upon termination a Member shall have no further obligations to the Pool nor shall it
be entitled to any portion of the Pool's assets or equity' Provided, the terminated
Member shall pay all of its pending contributions and assessments.
Section 16. Dissolution.
a. The Pool and this agreement may be terminated by the written consent of three-
fourths of the governing boards of the Members. Upon termination and wind-up, the
Pool and this agreement shall continue in effect for the purpose of the winding -up the
business and affairs or the Pool, including disposing of all claims, the collection of
additional assessments, and the distribution of assets.
b Upon termination or wind-up, the assets of the Pool shall be liquidated. Following the
payment of all claims and expenses, each Member shall be entitled to a percentage
share of the liquidation fund in that percentage which the total contribution payments
by each Member bears to the total contribution payments by all remaining Members
made over the life of the Pool,
c. Any and all disputes concerning the entitlement to or amount of any refund of excess
payments or the distribution of assets shall be resolved by arbitration pursuant to the
rules for commercial arbitration of the American Arbitration Association. All
Members may participate in the arbitration and shall be bound by the arbitrator's
decision.
Section 17. Liability Limitation. In the event that any claim against a Member is not covered
or exceeds the applicable limits of coverage provided by the Pool, the liability for that
obligation lies with the Member.
Section 18. No Assignment. Neither the Pool nor any Member may assign any rights, claim,
or interest established by this agreement without the consent of the other.
Section 19. Mediation. The parties to any dispute between the Pool or its Members
concerning this agreement shall seek to resolve it through mediation.
Section 20. Litigation.
a. Venue for any dispute concerning this agreement may only be laid in the Thurston
County Superior Court or the United States District Court for the Western District of
Washington.
b The prevailing party in any litigation brought to enforce this agreement shall be
entitled to its reasonable attorney's fees and costs.
Section 21. Governing Law. This agreement shall be governed by the laws of Washington
except for the Washington laws on conflict of laws. Therefore the substantive laws of
Washington shall govern in all respects.
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WASHINGTON STATE TRANSIT INSURANCE POOL 1 RISK MANAGEMENT IN MOTION
P 2629 12th Court SW 1 Olympia, WA 98502 1 360-786-1620 1 www.wstip.org
Section 22. Supersession. This agreement supersedes and replaces all prior interlocal
agreements and amendments thereto pertaining to the Pool.
Section 23. Effective Date. This agreement shall be effective when approved by at least
three-fourths of the governing boards of the Members.
Section 24. Approval by Counterparts. This agreement may be approved by counterparts so
that Members need not execute the same document. Upon approval, each Member shall
promptly send a copy of the executed agreement to the Pool.
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RESOLUTION NO:
MEMBERSHIP APPENDIX
a Asotin County Public Transportation Benefit Area,
b Ben Franklin Transit,
c Clark County Public Transportation Benefit Area d/b/a C -Tran,
d Chelan/Douglas Transportation Benefit Area Authority d/b/a Link Transit,
e Clallam Transit System,
f Columbia County Public Transportation,
g Cowlitz Transit Authority d/b/a River Cities Transit,
h Everett Transit,
i Grant Transit Authority;
j Grays Harbor Transportation Authority;
k. Intercity Transit,
I Island County Public Transportation Benefit Area d/b/a Island Transit,
m Jefferson Transit Authority;
n Kitsap County Public Transportation Benefit Area d/b/a Kitsap Transit,
o Lewis County Public Transportation Benefit Area d/b/a Twin Transit,
p Mason Transit Authority;
q Pacific County Public Transportation Benefit Area d/b/a Pacific Transit System;
r Pierce Transit,
s City of Pullman d/b/a Pullman Transit,
t. Skagit Transit,
u Snohomish County Public Transportation Benefit Area d/b/a Community Transit;
✓ Spokane Transit;
w Valley Transit;
x. Whatcom Transportation Authority; and
y City of Yakima — Transit Division d/b/a Yakima Transit.
DEPARTMENT OF PUBLIC WORKS
2301 Fruitvale Blvd., Yakima, Washington 98902
Phone (509) 575-6005
Memorandum
Date: January 12, 2015
To: Honorable Mayor, Members of City ouncil, Ci Manager
From: Scott Schafer, Public Works Director
Alvie Maxey, Acting Transit Manager
Subject: WSTIP Interlocal Agreement Update
The Washington State Transit Insurance Pool is working with all of its members to
modify the language contained within the current Interlocal Agreement (ILA). This ILA is
the foundation document for the Pool by and between the Pool's 25 members and was
last revised in 2004.
In order to amend the ILA, the amendments must be approved by a three -fourth super -
majority of all of the Pool member boards. When the amendments have been approved
by the necessary three -fourth super -majority, the amendments will bind all members—
even those who have not voted on it and even those who voted against it. It is WSTIP's
request that all members vote to approve these amendments. Yakima Transit is not
aware of any member organization that is not going to sign the new ILA. The Pool is
authorized by RCW 48.62 and controlled by WAC 82-60.
The following minor revisions are needed to bring the WSTIP ILA current:
• Members are now enumerated in an appendix. If the membership changes, the
executive director need only incorporate those changes in the appendix.
• All references to "associate member" have been deleted. In years past, the Pool
had an associate member program. Associate members—members who do not
have a vote in all pool matters—are now prohibited by state regulations.
• All references to "directors" have been changed to "representatives."
• Sections 14 and 15 deal with member withdraw and termination. In general the
Pool and the withdrawing/terminated member do a "walk away" whereby neither
the Pool nor the member have any continuing obligation to one another.
However provisos have been added to each section that there is no walk away
from pending contributions and assessments.
• Various changes to punctuation and style.
Administration 575-6005 • Equipment Rental 575-6005 • Parks & Recreation 575-6020 • Refuse 575-6005
Street 575-6005 • Traffic 575-6005 • Transit 575-6005
Yakima
1994
C�•i/ WASHINGTON STATE TRANSIT INSURANCE POOL I RISK MANAGEMENT IN MOTION
2629 12th Court SW 1 Olympia, WA 98502 1 360-786-1620 1 www.wstip.org
October 9, 2014
TO WSTIP Member Governing Boards
FROM Allen F Hatten, Executive Director,
Washington State Transit Insurance Pool
SUBJECT Amendments to the Interlocal Agreement between WSTIP and Your Agency
For your consideration attached is two signed copies of the revised Interlocal Agreement (ILA) of the
Washington State Transit Insurance Pool (Pool). This is the foundation document for the Pool by and
between the Pool's 25 members. Since its adoption in 1989 by the Pool's eight founding members, the
Pool's ILA has been amended twice. In 2002 it was amended to (1) allow the Pool to provide property
coverage in addition to liability coverage, and (2) allow amendments to the ILA by a three-fourths super -
majority vote of the governing boards rather than requiring unanimity. It was amended again in 2004.
The 2004 revision was a comprehensive one and followed an extensive evaluation and analysis. The
2004 document is the one in effect today.
This paper contains an explanation of proposed changes for this third revision of the ILA. This proposed
ILA has been approved by the Pool's Executive Committee and Board of Directors and is now forwarded
to you and all other member boards for a vote
Process Considerations
In order to amend the ILA the amendments must be approved by a three -fourth super -majority of all of the
Pool member boards. When the amendments have been approved by the necessary three -fourth super -
majority, the amendments will bind all members—even those who have not voted on it and even those
who voted against it. It is our request that all members vote to approve these amendments.
Legal Underpinnings
The contents of any ILA the Pool wants to adopt is controlled by RCW 48.62, the enabling legislation for
risk pools in this state. In addition, the state's Department of Enterprise Services has adopted regulations
that guide and constrain pool organization and operations. These regulations may be found in WAC 82-
60.
"Clean up" Changes Only
The following changes are needed to bring the 2004 ILA current:
• Members are now enumerated in an appendix. If the membership changes, the executive
director need only incorporate those changes in the appendix.
• All references to "associate member" have been deleted. In years past, the Pool had an
associate member program Associate members—members who do not have a vote in all pool
matters—are now prohibited by state regulations.
• All references to "directors" have been changed to "representatives."
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WASHINGTON STATE TRANSIT INSURANCE POOL 1 RISK MANAGEMENT IN MOTION
2629 12th Court SW 1 Olympia, WA 98502 1 360-786-1620 1
www.wstip.org
• Sections 14 and 15 deal with member withdraw and termination In general the Pool and the
withdrawing/terminated member do a "walk away' whereby the neither the Pool nor the member
have any continuing obligation to one another. However provisos have been added to each
section that there is no walk away from pending contributions and assessments.
• Various changes to punctuation and style.
Action Requested
Please consider these proposed changes at an open public meeting of your governing board. If you
decide to approve it, you must approve it exactly as presented as each Pool member board must approve
the same document in order for it to be adopted. If you approve it, please be sure it is appropriately
recorded in your minutes including who has the authority to actually sign the document(s). Have that
individual sign in the places indicated. Keep one copy and return one to the Pool. If you decide not to
approve it, please give us the bad news and tell us why.
After signature and sending us a copy, please follow the appropriate process your agency has
established for filing Interlocal Agreements set forth in RCW 39.34.040. WSTIP will be posting all these
Interlocal Agreements on our website.
We stand ready to answer any questions or concerns you may have. My direct number is (360) 786-5004
and my email address is al(a.wstip.orq.
AH:tc
Attachment: Interlocal Agreements
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.D.
For Meeting of January 20, 2015
ITEM TITLE: Resolution modifying the existing Interlocal Agreement with
the Washington State Transit Insurance Pool (WSTIP)
SUBMITTED BY: Scott Schafer, Public Works Director
Alvie Maxey, Acting Transit Manager - (509) 576-6415
SUMMARY EXPLANATION:
Yakima Transit is currently a member of the Washington State Transit Insurance Pool (WSTIP)
for liability insurance and has been since 2005 WSTIP operates an insurance pool to help
reduce insurance costs for transit agencies in the State of Washington.
On September 26, 2014, the WSTIP Board of Directors approved to update the existing
Interlocal Agreement between WSTIP and its members. The last update was conducted in
2004, prior to Yakima Transit joining the pool Updates include revision to some of the
language in the document to comply with State law; modify provisions to allow members, who
want to withdraw, the option to "walk away" without a continuing obligation by either the pool or
the member; add a "wind up" provision if the pool is terminated, and elimination of the term
"associate members "
Resolution: X
Other (Specify):
Contract: X
Start Date: Upon signature
Item Budgeted: NA
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to: Al Hatten, WSTIP, 2629
98502
Phone: (360) 786-1620
Ordinance:
Contract Term: lndefinate
End Date:
Amount:
Partnership Development
12th Court SW, Olympia, WA
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
City Manager
Staff respectfully requests City Council to approve the Resolution modifying the existing
Interlocal Agreement with the Washington State Transit Insurance Pool.
ATTACHMENTS:
Description Upload Date
D Resolution WSTIP ILA Revision 1/12/2015
D Memo WSTIP ILA Revision 1/12/2015
D WSTIP Explanation of the Interlocal Agreement 12/11/2014
D Interlocal Agreement 2014 12/11/2014
D Previous WSTIP Interlocal Agreement 12/11/2014
Type
Resolution
Cover Memo
Backup Material
Contract
Contract
RESOLUTION NO. R-2005- 127
A RESOLUTION authorizing and directing the City Manager of the City of
Yakima to execute the Washington State Transit Insurance Pool
Interlocal Agreement, appointing the Yakima Transit Manager as
Yakima Transit's designated director to the Washington State
Transit Insurance Pool Board of Directors and the Public Works
Director as alternate, and authorizing the Transit Manager to
execute all necessary documents, including Best Practices, as may
be necessary or appropriate to allow the City of Yakima Transit
Division to become a member of the Washington State Transit
Insurance Pool.
WHEREAS, City of Yakima is a municipal corporation as defined in
RCW 35.01; and
WHEREAS, pursuant to the provisions of R.C.W. 39.33.050 the City of
Yakima has developed and operates a public mass transportation system; and
WHEREAS, Chapter 39.34 of the Revised Code of Washington, entitled
"Interlocal Cooperation Act," permits local governmental units to make the most
efficient use of their powers by enabling them to cooperate with other
municipalities on the basis of mutual advantage; and
WHEREAS, RCW 48.62 empowers local government entities to join together
to form a joint self-insurance program; and
WHEREAS, the Washington State Transit Insurance Pool (WSTIP) has been
formed by transit systems throughout Washington State to provide a self-insurance
program for member municipalities; and
WHEREAS, the opportunity to join WSTIP will provide the City more
comprehensive insurance coverage for its Transit Division; and
WHEREAS, the City Council deems it to be in the best interest of the City of
Yakima to join WSTIP; and
WHEREAS, upon execution of the attached Agreement the City of Yakima,
Transit Division will become a member of WSTIP; and
WHEREAS, upon becoming a member of WSTIP the City of Yakima, Transit
Division is required to designate one board director and at least one alternate for
representation on the WSTIP Board of Directors; and
WHEREAS, WSTIP has established best practices for member programs and
provides assistance in meeting the best practices; and
WHEREAS, upon becoming a member of WSTIP the City of Yakima, Transit
Division will be required to execute a best practices Agreement and Compact; and
WHEREAS, since the Transit Manager will be Yakima Transit's designated
board director it is appropriate for said Transit Manager to execute the necessary
and appropriate best practices Agreement and Compact; and
WHEREAS, the City Manager, or his designee, is authorized to negotiate
and execute any additional documents that are necessary or appropriate for the
City of Yakima Transit Division to enter into and participate in WSTIP;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
YAKIMA:
The City Manager is hereby authorized and directed to execute the
appropriate Washington State Transit Insurance Pool Interlocal Agreement,
appoint the Transit Manager as Yakima Transit's designated director to WSTIP's
Board of Directors and the Director of Public Works as the designated alternate
representative and authorize the Transit Manager to execute the necessary best
practices Agreement and Compact and any other documents that may be necessary
or appropriate to allow the City of Yakima Transit Division to become a member of
WSTIP.
ADOPTED BY THE CITY COUNCIL this 16th day of August, 2005.
ATTEST:
XafA-t_..,- ./24-4.,
City Clerk
2
aul P. George, Mayor
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of August 16. 2005
ITEM TITLE: Consideration of resolution authorizing the City Manager of the City of
Yakima to execute an interlocal agreement as a party to the Washington
State Transit Insurance Pool ("WSTIP"), approving the City of Yakima
Transit Division to become a member of WSTIP with its attendant
requirements, and for the appointment of City Transit personnel to the
WSTIP Board of Directors.
SUBMITTED BY: Department of Public Works, Transit Division
Finance Department
CONTACT PERSON/TELEPHONE: Chris Waarvick, Director of Public Works, 575-6005
Rita Anson, Finance Director , 575-6070
SUMMARY EXPLANATION: Staff respectfully requests execution of an interlocal
agreement for liability insurance with the Washington State Transit Insurance Pool ("WSTIP").
The resolution further authorizes the City Manager to approve the Transit Manager to sign Best
Management Practices agreements. The resolution also authorizes and directs the City Manager
to appoint the Transit Manager and Public Works Director as the City's Transit representative and
alternate to the WSTIP Board of Directors.
The City's insurance broker, Marsh Advantage America ("Marsh") advises the City on insurance
coverage and markets its insurance coverage for various types of insurance, including property,
excess liability, boiler and machinery, and excess workers compensation insurance. Joel Pearson
and Deborah Krautwurm of Marsh work on the Marsh service team, and have provided insurance
and risk management services to the City since the 1980's. They both feel the WSTIP program
provides a good option to insure the liability exposures for the Transit Division.
(Continued on Page Two)
Resolution X Ordinance Other (Specify)
Contract X Mail to (name and address): Joel Pearson and Deb Krautwurm
Marsh Advantage America, P. O. Box 2547. Yakima. WA 98907
Funding Source Risk Management
APPROVED FOR SUBMITTAL:��,
Phone: (509) 248-7460
City Manager
STAFF RECOMMENDATION: Staff respectfully recommends that City Council adopt the
attached resolution required for the City of Yakima Transit Division to join WSTIP.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2005-127
(Page Two)
The Transit Division is currently included in the City's self-insurance program subject to a
$1,000,000 retention and $8,000,000 liability limit through a policy issued by Genesis Insurance
Company In addition, for the van pool program, there has been a $1,500,000 liability policy with
Cornhusker Casualty through Argus for the van pool to cover the City's retention. The
Cornhusker policy is being cancelled on September 1, 2005, and a viable alternative has not been
found. The alternatives are for the City to self -insure the $1,000,000 per occurrence van pool
exposure, discontinue the van pool, or place coverage through WSTIP.
The WSTIP pool program will insure the entire Transit Division subject to a $5,000 deductible
and a $12,000,000 limit at a competitive price. The WSTIP program has been in existence since
1989. There are currently 21 members, including Ben Franklin Transit, Community Transit,
Kitsap Transit, and Spokane Transit.. The members share in the first $600,000 liability layer,
which is fully funded, and then reinsure the additional $11,400,000 layer. The principal reinsurer
is ACE Tempest, which carries an A+ XV rating and meets Marsh guidelines.
The policy period with WSTIP is for a one-year period commencing September 1, 2005 through
August 31, 2006. The cost of the one-year liability coverage through WSTIP is $111,053.
RAF. 6/28/04
Washington State Transit Insurance Pool
Interlocal Agreement
Whereas, RCW 48 62 empowers local govemment entities to join together to form a joint self- -
insurance program; and
Whereas, the transit systems identified in Section 1 have previously joined together through an
interlocal agreement to form the Washington State Transit Insurance Pool (Pool); and
Whereas, the transit systems desire to continue the Pool, expand its powers, and revise
operational requirements through the adoption of this new interlocal agreement;
follows:
Now, therefore, in consideration of the mutual covenants set forth herein, it is hereby agreed as
Section 1. Members. The following local govemmental entities are parties to this interlocal
agreement and are Members of the Pool:
a. Ben Franklin Transit;
b Chelan/Douglas Transportation Benefit Area Authority d/b/a Link Transit;
c. Clallam Transit System;
d Grant Transit Authority;
e. Grays Harbor Transportation Authority;
f Intercity Transit;
g. Island County Public Transit Benefit Area d/b/a Island Transit;
h. Jefferson Transit Authority;
i. Kitsap County Public Transportation Benefit Area d/b/a Kitsap Transit;
Lewis County Public Transportation Benefit Area d/b/a Twin Transit;
k. Mason County Transportation Authority;
Pacific County Public Transportation Benefit Area d/b/a Pacific Transit System;
m. City of Pullman d/b/a Pullman Transit;
n Skagit Transit;
o. Snohomish County Public Transportation Benefit Area d/b/a Community Transit;
p. Spokane Transit; and
q. Whatcom Transportation Authority.
Section 2. Definitions. The following terms are defined as follows:
a. Associate Member—a local govemmental entity that has joined the Pool that
does not participate in the self-insurance program provided by the joint funding of
the Pool's Members.
b. Board—the board of directors of the Pool.
c. Member—a local govemment public transit entity that has joined the Pool,
including those identified in Section 1, that participates in the Pool's self-
insurance program provided by joint funding of the Members.
d. Pool—the Washington State Transit Insurance Pool.
Throughout this agreement defined terms are in bold.
1
Section 3. Powers. The Pool is empowered to:
a. Do all things necessary and proper for the establishment of self insurance
programs for property and liability risks.
b. Investigate the establishment of self-insurance programs for risks in addition to
those identified in subsection 3a. Following such investigation the Pool may
establish such additional self-insurance programs so long as the requirements of
section 12 are met.
c. Establish a self-insurance program for Members through joint funding.
d. Purchase insurance, excess insurance, and reinsurance.
e Provide for risk management, Toss control, and other services.
f Provide legal counsel for the defense of claims and other legal services.
g. Consult with the state insurance commissioner and the state risk manager.
h. Exercise all powers and perform all functions necessary to accomplish all lawful
programs.
Enter into contracts and incur debts, liabilities, and obligations.
Sue and be sued.
k. Invest funds.
I. Provide administrative and financial services to its members and others.
Section 4. Board of Directors.
a. The Pool shall be govemed by its Board.
b. Each Member shall appoint one director and at least one alternate director to the
Board.
c. If a director is not able to attend a meeting of the Board, an altemate director
may attend and shall have the same authority as the director
d. Directors and altemate directors shall be officers or employees of the Member.
e. The Board shall meet at least once each calendar year
f. The Board shall adopt an annual budget.
g The Board shall be chaired by its president or, if the president is not available, its
vice president.
h. Each director or alternative director shall have one vote. Voting by proxy is not
permitted Except as is specifically provided otherwise in this agreement, a
majority of the directors or altemate directors present at a meeting of the Board
shall constitute a quorum and the majority of the quorum is sufficient to decide
any matter
Section 5. Bylaws The Board shall adopt bylaws which shall not be inconsistent with any part of
this agreement.
Section 6. Executive Director. The Board shall engage an executive director who shall be the
chief executive officer of the Pool.
Section 7. Officers.
a The Board shall elect officers
b. The officers shall include a president, vice president, secretary, and such other
officers as authorized by the bylaws.
c. Duties and terms of office of officers shall be as specified in the bylaws.
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Section 8. Committees. The Board may establish committees, both standing and ad hoc, from
time to time as it deems appropriate The composition and responsibilities of committees shall be
specified by the Board in the bylaws.
Section 9. New Members.
a. The Board may approve the admission of new Members and Associate
Members on terms and conditions as it deems appropriate.
b For admission, Members and Associate Members must have at least three-
fourths affirmative vote of all directors or alternate directors of the Board for
admission.
c. Members must be local government public transit entities situated in
Washington.
d Associate Members must be local govemment entities.
e Once approved for membership, a new Member's admission to the Pool shall be
memorialized by the new Member signing copies of this Interlocal Agreement
and all amendments thereto
Section 10. Amendment.
a. The goveming boards of the Members may adopt amendments to this
agreement.
b No amendment shall be adopted without at least three-fourths affirmative vote of
all goveming boards.
c. The Pool shall provide notice of any proposed amendment to the goveming
boards of the Members as specified in the bylaws.
Section 11. Duration. The duration of the Pool shall be perpetual
Section 12. Addition of New Programs.
a. The Pool may establish self-insurance programs in addition to self-insurance
programs for property and liability risks only with the affirmative vote of at least
three-fourths of all directors or altemate directors of the Board.
b No Member shall be required to participate in any such additional self-insurance
program
c. If the Pool elects to establish such additional self-insurance programs , it shall
implement adequate measures to protect and safeguard the equity and fiscal
integrity of the Pool's self-insurance programs for liability and property.
Section 13. Funding
a. The Pool shall be funded by Member contributions and assessments and by
fees charged to Associate Members and non-members.
b. Member contributions and assessments shall be established by the Board in its
annual budget. If the Pool's financial situation warrants, the Board may require
supplementary and retroactive contributions and assessments.
c. All members shall pay contributions, assessments, and fees promptly when due
Section 14. Withdrawal of a Member.
a. A Member may withdraw from the Pool only at the end of a fiscal year by
providing at least six month's written notice thereof. No Member may withdraw
3
for thirty six months after joining the Pool Following withdraw a former Member
may not rejoin the Pool for thirty six months.
b. An Associate Member may withdraw from the Pool by providing at least three
month's written notice thereof
c. The withdrawal by a Member shall not affect the validity of this agreement with
respect to the remaining Members.
d. Upon withdrawal a Member shall have no further obligations to the Pool nor
shall it be entitled to any portion of the Pool's assets or equity
Section 15. Termination of a Member.
a. A Member may be terminated Qnly by the affirmative vote of at least three-
fourths of all directors or alternate directors of the Board. The effective date of
termination shall be six months following notice of the termination vote. Until the
effective date of termination, the terminated Member shall have the benefits and
burdens of participation in the Pool.
b An Associate Member may be terminated by a majority vote of the Board.
c. The termination of a Member shall not affect the validity of this agreement with
respect to the remaining Members.
d. Upon termination a Member shall have no further obligations to the Pool nor
shall it be entitled to any portion of the Pool's assets or equity
Section 16. Dissolution.
a. The Pool and this agreement may be terminated by the written consent of three-
fourths of the governing boards of the Members. Upon termination and wind-up,
the Pool and this agreement shall continue in effect for the purpose of the
winding -up the business and affairs or the Pool, including disposing of all claims,
the collection of additional assessments, and the distribution of assets.
b Upon termination or wind-up, the assets of the Pool shall be liquidated. Following
the payment of all claims and expenses, each Member shall be entitled to a
percentage share of the liquidation fund in that percentage which the total
contribution payments by each Member bears to the total contribution payments
by all remaining Members made over the life of the Pool.
c. Any and all disputes concerning the entitlement to or amount of any refund of
excess payments or the distribution of assets shall be resolved by arbitration
pursuant to the rules for commercial arbitration of the American Arbitration
Association. All Members may participate in the arbitration and shall be bound
by the arbitrator's decision.
Section 17. Liability Limitation. In the event that any claim against a member is not covered or
exceeds the applicable limits of coverage provided by the Pool, the liability for that obligation lies
with the member.
Section 18. No Assiqnment. Neither the Pool nor any member may assign any rights, claim, or
interest established by this agreement without the consent of the other.
Section 19. Mediation. The parties to any dispute between the Pool or its members concerning
this agreement shall seek to resolve it through mediation.
Section 20. Litigation.
a. Venue for any dispute concerning this agreement may only be laid in the
Thurston County Superior Court or the United States District Court for the
Western District of Washington
b The prevailing party in any litigation brought to enforce this agreement shall be
entitled to its reasonable attorney's fees and costs.
Section 21. Governing Law. This agreement shall be govemed by the laws of Washington except
for the Washington laws on conflict of laws Therefore the substantive laws of Washington shall
govern in all respects.
Section 22. Supersession. This agreement supersedes and replaces all prior interlocal
agreements and amendments thereto pertaining to the Pool.
Section 23. Effective Date. This agreement shall be effective when approved by twelve of the
governing boards of the sixteen Member systems.
Section 24. Approval by Counterparts This agreement may be approved by counterparts so that
Members need not execute the same document. Upon approval, each Member shall promptly
send a copy of the executed agreement to the Pool.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly
authorized representatives on the dates indicated below.
CITY OF YAKIMA
R.A. Zais, Jr., City Manager
Date: / 7 OAS
ATTEST:
2
Karen Roberts, City Clerk
City Contract No.
Resolution No. : — ii — a 7
Approved as to form.
WASHINGTON STATE TRANSIT INSURANCE POOL
By
Its-l.L fl V E.. (2.0401-6
5
WSTIP Best Practices Agreement
WHEREAS, each WSTIP member may maintain or improve its annual contributions by supporting
implementation of Best Practices recommendations, and
WHEREAS, the Best Practices were developed by WSTIP's own members through a process of
review, collaboration and consensus; and
WHEREAS, it is known that effective loss controUprevention begins with the commitment from senior
management combined with leadership, training and awareness to reduce costs of risk; and
WHEREAS, it is the purpose of the Best Practices recommendations to benefit members, their
employees, passengers and guests by assisting each member to design and implement a plan over a period
of time; and
WHEREAS, WSTIP shall provide such resources as Toss control assistance, training, and other
services to each participating member to support implementation of their plan as provided in the WSTIP
annual budget; and
WHEREAS, this agreement is mandatory for any new transit agency seeking WSTIP membership;
NOW THEREFORE, BE IT RESOLVED that this agreement is an allegiance between WSTIP and
the below signed member to adopt the Best Practices recommendations, with support and assistance from
WSTIP, over a reasonable, mutually acceptable period of time.
Signed this 1? / ,l day of /41)C_,1)51- , 2005
City of Yakima, Transit Division
Transit Manager
WSTIP
MINIMUM BEST PRACTICES
MEMBERSHIP COMPACT
WHEREAS, each WSTIP member may maintain or improve its annual contributions by
supporting implementation of the Minimum Best Practices Recommendations; and
WHEREAS, the Minimum Best Practices Recommendations were developed by WSTIP's
own members through a process of review, collaboration and consensus; and
WHEREAS, it is known that effective loss control/prevention begins with the
commitment from senior management combined with leadership, training and awareness
to reduce costs of risk; and
WHEREAS, it is the purpose of the Minimum Best Practices Recommendations to benefit
members, their employees, passengers and guests by assisting each member to design and
implement a plan over a period of time; and
WHEREAS, WSTIP shall provide such resources as loss control assistance, training, and
other services to each participating member to support implementation of their plan as
provided in the approved WSTIP IP budget; and
WHEREAS, this compact is voluntary and shall not limit the rights or privileges of the
member transit agency as a member of the Washington State Transit Insurance Pool;
NOW THEREFORE, BE IT RESOLVED that this compact is an allegiance between W51'IP
and the below signed member to adopt the Minimum Best Practices Recommendations,
with support and assistance from WSTIP, over a reasonable, mutually acceptable period of
time.
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Signed this 7 day of , 2005
Transit City of Yakima Transit Division
Ken Mehin, Transit Manager
Executive Director - WSTIF